stc's TAWAL gets approvals to acquire 3 tower firms in Bulgaria, Croatia, Slovenia

Logo of Telecommunications Towers Co. (TAWAL)

stc said its subsidiary Telecommunications Towers Co. (TAWAL) received all the necessary approvals to acquire a portfolio of tower assets from United Group, which includes sites in Bulgaria, Croatia and Slovenia.

The approvals were obtained and the acquisition was completed on Aug. 24, the telecom services provider said in a statement to Tadawul, adding that the financial impact is expected in Q3 2023.

Following the acquisition, TAWAL’s towers portfolio reached more than 21,000 across five countries and it represents a unique addition to stc’s complete digital ecosystem. 

TAWAL financed the deal through Shariah-compliant bank loan, totaling $1.42 billion (SAR 5.3 billion). Saudi National Bank (SNB) provided a loan of $ 1.02 billion ($300 million out of the total amount is a bridge loan), followed by Dubai Islamic Bank ($250 million), and First Abu Dhabi Bank ($150 million). 

Yazeed Alhumied is a related party on the loan arrangement, as he serves on the boards of stc and SNB. Further, the Public Investment Fund is a major shareholder in stc and SNB.

In April, stc announced that TAWAL had signed an agreement to acquire United Group’s tower assets for EUR 1.22 billion (nearly SAR 5 billion), Argaam earlier reported.

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